(1) Where a reseller who has obtained certificate of composition registration in Form 3CR intends to opt out of fixed amount under sub-section (3) of section 16 or has become ineligible under that sub-section, he shall apply for normal registration under rule 5A and surrender the certificate granted to him in Form 3CR within ten days of opting out or becoming so ineligible.

(2) The certificate of composition registration of the reseller as referred to in sub-section (1) shall stand cancelled from the date of his making the normal application for registration or from the date of his ineligibility, as the case may be.